The Priceline Group (PCLN) PT Lowered to $2,000 at Needham & Company
Needham & Company lowered its price target on The Priceline Group (NASDAQ: PCLN) to $2,000.00 (from $2,200.00) while maintaining a Buy rating following strong Q3 results but lower Q4 guidance.
Analyst Laura Martin notes "As PCLN shifts money out of performance marketing into brand advertising (ie, TV), downward margin pressure, lower marketing ROIs, and slowing revenue growth over the next several quarters appears likely, even if there is not a structural problem (as PCLN asserts)."
Martin believes that there are structural issues for costs and they worry that hotel consolidation & loyalty programs are siphoning consumers away from OTAs.